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HomeMy WebLinkAboutItem 1g - Purchase of Imported Replacement Water/ytF O R�.�9'yd r AuFU�nn� 3 STAFF REPORT Public Works Services Department DATE: November 19, 2013 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Ken Herman, Deputy Public Works Services Director SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO PURCHASE 3,800 ACRE -FEET OF IMPORTED REPLACEMENT WATER FROM THE MAIN SAN GABRIEL BASIN WATERMASTER FOR A TOTAL COST OF $2,557,400 Recommendation: Approve SUMMARY The City of Arcadia gets a major portion of its drinking water supply from the Main San Gabriel Groundwater Basin (Basin). The remaining demand is met from City wells that pump a fixed amount of groundwater from the Raymond Basin. The City of Arcadia has a Cyclic Storage account with the Main San Gabriel Basin Watermaster that can be used to store imported water in the Basin for later use. This year, the City has the opportunity to pre - purchase imported water that has been made available through Upper San Gabriel Valley Municipal Water District for $673 per acre -foot. This rate is about $100 per acre -foot less than normally purchased Replacement Water. The water will remain in the City's account until it is used. It is recommended that City Council authorize and direct the City Manager to purchase 3,800 acre -feet of imported Replacement Water from the Main San Gabriel Basin Watermaster for a total cost of $2,557,400. DISCUSSION In 1973, as a result of overproduction of water from the Basin, a stipulated judgment was entered into that created the Main San Gabriel Basin Watermaster. The Main San Gabriel Basin Watermaster is a nine - person board appointed by the Los Angeles County Superior Court that administers and enforces the provisions of the Main San Gabriel Basin Judgment, which established water rights and responsibility for efficient management of the quantity and quality of the Basin. Purchase Replacement Water from the Main San Gabriel Basin Watermaster November 19, 2013 Page 2 of 3 This is accomplished in part by the Main San Gabriel Basin Watermaster determining the total amount of water that can be pumped from the Basin each year, free from a Replacement Water assessment, which is referred to as the Operating Safe Yield. The City of Arcadia's annual share of the Operating Safe Yield is 4.23 %. Pumping more water than the amount established for a given year is allowed; however, production in excess of the City's annual share requires purchase of Replacement Water to recharge the groundwater basin. Recent pumping restrictions imposed on City of Arcadia wells due to low groundwater levels in the East Raymond Basin have put a greater demand on water pumped from the Basin. For FY 2013 -14, the City of Arcadia is allowed to pump 7,616 acre -feet of water from the Basin. Based on current pumping trends, it is anticipated that this Fiscal Year the City will pump approximately 12,500 acre -feet of water from the Basin in order to meet demands. This means that it is projected that the City will need to purchase an additional 4,884 acre -feet of Replacement Water at the end of the Fiscal Year. The Main San Gabriel Basin Watermaster has set the cost for Replacement Water at $773 per acre -foot for FY 2013 -14. Pre - purchasing 3,800 acre -feet of imported water at the rate of $673 an acre -foot and storing the water in the City's Cyclic Storage Account will save the City $380,000. The advantages of pre - purchasing imported water and storing it in the City's Cyclic Storage Account are two -fold. It ensures that "wet" water is delivered to the Basin this year, which helps keep groundwater levels in the Basin high. Also, the water is purchased at a lower rate and can be stored in the City's Cyclic Storage Account for up to five years. This water will be used to satisfy over production this Fiscal Year, and any remaining balance will be saved in the City's Cyclic Storage Account to be used in later years to offset over production. FISCAL IMPACT Sufficient funds have been budgeted in the FY 2013 -14 Water Operations Budget for the purchase of Replacement Water. Pre - purchasing imported Replacement Water will save the City approximately $380,000 and can be used to satisfy the City's over production in the Main San Gabriel Groundwater Basin. Purchase Replacement Water from the Main San Gabriel Basin Watermaster November 19, 2013 Page 3 of 3 RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to purchase 3,800 acre -feet of Imported Replacement Water from the Main San Gabriel Basin Watermaster for a total cost of $2,557,400. Approved: Dominic Lazza City Manager